Raleigh Energy buys interest in Powder Metals

Copper powder is a fast-growing specialty market which has attracted Vancouver- based Raleigh Energy.

The company recently acquired approximately 40% of Powder Metals Australia which has a number of good copper properties in the northern state of Queensland.

About nine months ago, Raleigh also concluded an agreement with Amax Pacific (a subsidiary of Amax Inc.) which will see that major provide technical consulting services in the design, construction and start-up of powder- producing facilities in Cloncurry and Brisbane, Australia.

Amax will handle the sale of all metal powders which could eventually include some high grade product lines that are in heavy demand. Raleigh and its Australian partner have acquired an industrial plant in Brisbane which is sufficient for present production plans, aimed at supplying a market estimated to be growing at an annual rate of more than 10%.

The United States consumes more than 50 million lb of copper powder annually, mostly in powder metallurgy. This technology involves the fabrication of metal parts from metal if an alloy is being produced. There are dozens of other applications including coins, medals, medallions, bonding for grinding wheels, paints, electrical and electronic contacts.

The average value of U.S. production was $1.15 per lb in 1984, according to Amax, and most of the projected production would be sold into that market.

Powder Metals has substantial reserves of copper oxide ore which would be ideal for the production of a high grade (99.5%) product. On world markets this high grade production sells for up to $1.30 per lb, studies have shown.

Powder Metals has raised $6.5 million publicly to finance the development and its stock is listed on the Sydney and Brisbane stock exchanges.